Lexar and Sandisk xD cards

Lexar
Media and SanDisk have today both announced support for the xD-Picture
Card format, which was developed by Olympus, FujiFilm and Toshiba. Lexar
Media will now be offering xD-Picture Cards
in Lexar packaging through many of its worldwide retail outlets and SanDisk
have signed a 5 year agreement with Olympus to manufacture as well as
sell xD-Picture Cards under the Olympus brand.

Lexar Press Release:

Lexar Media and Olympus Sign Worldwide Supply and License Agreement

Lexar to Expand Sales of xD Picture Card

FREMONT, Calif., May 27, 2003 -- Lexar Media, a leading designer, developer
and marketer of award-winning high-performance digital media and accessory
products, and Olympus Optical Co., a world leader in the development and
marketing of digital cameras, today announced a significant expansion
of their relationship with the signing of a new OEM and technology licensing
agreement.

Under the new agreement, Lexar Media will now be offering xD-Picture
Cards in Lexar packaging through many of its 37,000 worldwide retail outlets.
Lexar Media has also agreed to license its patents to Olympus for the
xD-Picture Cards and host devices sold to Olympus' retail customers or
bundled with Olympus cameras. Lexar Media has been selling Olympus xD-Picture
Cards since 2002 in capacities of 16MB, 32MB, 64MB and 128MB, and, more
recently, 256MB.

"We are thrilled to expand upon our extensive past collaboration
with Olympus which has been a long-time investor in Lexar Media,"
said Eric Stang, Lexar Media's chairman and CEO. "The xD-Picture
Card has proven extremely popular with consumers and we are pleased to
bring our brand strength and worldwide distribution to this emerging format.
Since 1999, Olympus and Lexar Media have had a strategic alliance that
has included joint development, sales, and marketing of flash products
with Olympus cameras in certain retail markets internationally. We believe
this new agreement will continue to allow Lexar to offer a single solution
to all of a customer's memory card needs."

"Lexar Media has been a long and valued partner of Olympus,"
said Hiroshi Komiya, Olympus Director and Group President, Imaging Systems
Group. "We have always recognized the value of Lexar's technology
and look forward to this new dimension of our relationship."

Lexar Media's current offering of digital media includes xD-Picture Card,
CompactFlash Type I/II, Memory Stick - including Memory Stick Select and
Memory Stick PRO, Secure Digital Card, MultiMediaCard and Smart Media.
Lexar Media is the only company to that currently provides all popular
memory formats to its distributors and customers.

SANDISK ANNOUNCES LICENSING, MANUFACTURING AND SELLING AGREEMENT WITH
OLYMPUS FOR THE xD-PICTURE CARD

SanDisk To Make Olympus Branded xD-Picture Card For Olympus And For
Resale Through SanDisk's Retail Distribution Channel

SUNNYVALE, CA, MAY 27, 2003 - SanDisk Corporation (NASDAQ:SNDK) today
announced that it has signed a five-year agreement with Olympus Optical
Co., Ltd. covering the xD-Picture Card(tm) format. Under the agreement,
Olympus will be licensed to SanDisk's patents relating to xD flash cards
and host devices. SanDisk will be licensed to manufacture xD-Picture Cards
for Olympus as well as sell xD-Picture Cards under the Olympus brand through
SanDisk's global retail distribution channels. SanDisk will begin shipments
of xD-Picture Cards in selected regions beginning in June 2003, with worldwide
availability in the third quarter, 2003.

The xD-Picture Card is a flash memory card format developed and owned
by Olympus, FujiFilm and Toshiba. It was introduced in the fourth quarter
of 2002 and has gained popularity in many of the of new digital camera
models that are sold by Olympus and FujiFilm. The xD-Picture Card is targeted
primarily at "digital film" applications and offers high storage
capacities for high mega-pixel photos as well as high performance needed
to store the video clips that are becoming increasingly more popular in
digital cameras. SanDisk initially will sell the xD-Picture Card in capacities
ranging from 64 to 256 megabytes. The xD-Picture Card can support up to
a maximum future capacity of 8 gigabytes.

Eli Harari, SanDisk's President and CEO, said, "We are very pleased
with this agreement with Olympus, one of the leading manufacturers of
digital cameras in the world. This agreement allows us to support Olympus
as an important new OEM customer, as well as Olympus' customers in the
retail after-market. This is consistent with SanDisk's retail strategy
to be a one-stop-shop card supplier for consumers, regardless of which
flash card format they use in their digital cameras and other portable
digital appliances. Through this xD-Picture Card agreement with Olympus,
SanDisk plans to make and sell worldwide all the major flash card formats."

SanDisk, the world's largest supplier of flash data storage card products,
designs, manufactures and markets industry-standard, solid-state data,
digital imaging and audio storage products using its patented, high density
flash memory and controller technology. SanDisk is based in Sunnyvale,
CA.

The matters discussed in this news release contain forward looking statements
that are subject to certain risks and uncertainties as described under
the caption, "Factors That May Affect Future Results" in SanDisk's
annual report on Form 10-K and quarterly reports on Form 10-Q filed with
the Securities and Exchange Commission. The company assumes no obligation
to update the information in this release. SanDisk cannot guarantee that
it will succeed to manufacture competitively the xD-Picture Card or that
its sales of xD-Picture Card either to Olympus or through its own sales
channels will contribute materially to SanDisk's revenues or profits.

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